Exxaro still negotiating Black Mountain sale


Exxaro still negotiating Black Mountain sale

Published Date: 2020-10-12 | Source: Stephen Gunnion | Author: Stephen Gunnion

Exxaro still negotiating Black Mountain sale

The diversified resources group says it will apprise the market as soon as a transaction has been concluded.

Exxaro Resources says talks to sell its 24.4% interest in Black Mountain Mining are at an advanced stage but it hasn't struck a deal just yet. It was responding to recent media reports that suggested the sales process had been finalised.

The diversified resources group decided to sell Black Mountain after a strategic review of its portfolio of assets concluded that zinc mining wasn't strategically aligned to its long-term objectives. While a large part of its business is coal mining, Exxaro also has interests in iron ore, minerals sands and energy.

Black Mountain is a subsidiary of Vedanta Zinc International and is located at Aggeneys in the Northern Cape. It comprises the Deeps and Swartberg Shafts, as well as the Gamsberg Project.

Earlier this week, Reuters reported its was selling the stake to the Industrial Development Corporation.

Exxaro's shares rose 0.3% to R128.19 on Friday.

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